The business idea of Venture Capital is to offer institutional investors, such as pension funds, the opportunity to invest in young unlisted companies with a significant growth potential. David Sonnek, CEO at SEB Venture Capital, gave his personal view on Venture Capital and how SEB Venture Capital searches for and invests in tech companies. It very much comes down to predicting missing links in future value chains or value networks. If a potential investment can be expected to fill such a future gap and be sold at a high enough premium within a 5-year period, then it may be a candidate. But being able to make such predictions demands extensive analysis and very few of the analyzed companies eventually make all the way into the portfolio.
Business Creation 